Northwest completes $86M deal for Union Community

Northwest Bancshares completed its purchase of the owner of Union Community Bank for $85.8 million in cash and stock on Friday.

With the transaction, Northwest significantly expands its presence in Lancaster County, growing from six to 15 full-service offices.

The deal lifts Northwest from the 13th largest bank in the county, with 1.36 percent of all deposits here, to sixth biggest, with 5.60 percent of all deposits here.

These figures are based on Federal Deposit Insurance Corp. data as of June 30, the most recent available.

For Warren-based Northwest, the deal brings a bigger stake “in one of the most rapidly growing counties in our footprint,” said CEO Ronald J. Seiffert in a prepared statement.

The addition of Union Community’s offices and its $554 million in assets increases Northwest’s branch network to 172 full-service offices in three states and its total assets to $10.1 billion, about half the size of Fulton Financial.

The impact on Union Community’s roughly 135 employees was not immediately available.

In keeping with its broader presence here, Northwest has moved its regional headquarters from Lebanon to the former Union Community headquarters at 101 E. Main St., Mount Joy. Its headquarters’ staff numbers 15.

Northwest has been in Lancaster County since acquiring Steitz Savings & Loan in 1990. Steitz had one office here, in Manheim.